1. Field of the Invention
The present invention relates to a check processing apparatus and program for processing payments by check, to an electronic payment system, and to a check processing method.
2. Description of the Related Art
Payment systems using checks C such as business checks C1 shown in FIG. 4A and personal checks C2 shown in FIG. 4B are common throughout the United States. More recently, electronic payment systems that scan checks C and communicate the captured image data over a network for electronic processing have been introduced. These electronic payment systems quickly and safely complete the payment process.
As shown in FIG. 11, such an electronic payment system 201 involves a user 211 that presents a check C for payment, a store (POS terminal) 212 where the check C is used, the issuing bank 213 where the account on which the check C is drawn is held, the vendor's bank 214 where the store 212 does its banking, and a payment processing server 215 for processing check C payments. The payment processing server 215 is connected over a network 220 to the user 211, store (POS terminal) 212, check-issuing bank 213, and the vendor's bank 214.
When making a payment, the user 211 presents a check C to the store. If the check C is a personal check such as shown in FIG. 4B, check tracking information 92 (an MICR code containing information identifying the user, issuing bank, and account) uniquely identifying the check C is preprinted in magnetic ink on the front (face) of the check C. This information can be read using a magnetic head (MICR: magnetic ink character reader), and using this information the store can readily verify the validity of check C. To verify the validity of check C, the store sends the check information to the payment processing server 215. The payment processing server 215 determines if the check C is valid, and returns the result to the store.
If the validity of check C is confirmed, the operator (check-out clerk) prints the check amount 95, 98 and store information (payee) 94 on the check face, and endorsement information 99 on the check back (see FIG. 4 and FIG. 5), and has the user 211 sign the check C on the signature line 96. The store then scans and captures an image of the face of the completed check using a check scanner, stores the resulting image data together with the tracking information 92 read by MICR, the check amount 95, 98, and store information (payee) 94 in the POS terminal computer, and sends the same information to the payment processing server 215.
Based on the received image data, tracking information 92, check amount 95, 98, and store information (payee) 94, the payment processing server 215 executes a transaction process between the vendor bank 214 and check-issuing bank 213. The payment processing server 215 also reports to the user 211 that the image data was transmitted and the payment processed. By thus transmitting an electronic image of the check C, the electronic payment system 201 eliminates the need to further handle the physical check, and thus quickly and safely completes the payment process.
Check payment systems, including electronic payment systems 201 such as described above, have been beset by growing damages from check forgery and improper check usage, including theft and checks returned for insufficient funds. In the United States alone such damages reach $1 billion a year, and approximately one-million bad checks are found within the check payment system every day.
To help reduce such losses, retail stores commonly require the check user to present such identification as a driver license or other photo ID to (1) confirm a match between the user's name and the name on the check, and (2) confirm a match between the user and the ID photograph on the driver license or other presented identification. This method cannot, however, detect unauthorized usage if the presented identification is forged, for example, and leaves no evidence or proof that the identification was forged.
To solve this problem, payment systems that store the driver license number in addition to check image and other payment information are also available. See, for example, Japanese Unexamined Patent Appl. Pub. 2003-6551. Some stores also routinely record the driver license number on the check C. Unfortunately, errors occur either writing the driver license number on the check or entering the driver license number into the POS terminal, and this data is therefore also considered insufficient as evidence.
To solve this problem, Image Data LLC in the United States proposed an identity verification system for verifying an individual's identity using a database of personal identification information including facial photographs and personal information based on a credit card or check C presented by a user. See, for example, PCT/US96/06425.
The problem with the foregoing system, however, is that a nationwide database containing personal information for an unknowable number of individuals throughout the United States, and the infrastructure enabling identity verification on-line, are unavailable, and this system is therefore not expected to have widespread effect.